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HD 4569

An Act authorizing municipalities to impose a methane emissions surcharge and authorize non-pipeline alternatives

194th Legislature (2025-2026) Introduced by Cynthia Creem and 1 co-sponsor

Allows municipalities to levy a methane surcharge on natural gas to fund local emissions-reduction programs and pursue non-pipeline methane reduction options.

Referred to the committee on House Rules
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Bill Summary · HD 4569

Summary: Bill HD 4569 – An Act authorizing municipalities to impose a methane emissions surcharge and authorize non-pipeline alternatives

Overview

HD 4569 proposes granting municipalities in Massachusetts the authority to (1) impose a methane/emissions surcharge on natural gas use and (2) create an Emissions Reduction Fund to finance local programs aimed at reducing emissions. The bill also contemplates allowing municipalities to pursue non-pipeline approaches to methane reduction. The measure is currently referred to the House Rules Committee and was introduced on April 17, 2025 (Filed April 14, 2025; Docket No. 4569). Primary sponsor: Representative Tommy Vitolo.

Key Provisions

1) Emissions Reduction Fund

  • Establishes a separate municipal fund, the Emissions Reduction Fund, with the treasurer as custodian. Expenditures require action by the municipal legislative body.
  • Eligible funds to be deposited into the Emissions Reduction Fund:
    • Local surcharges or bond proceeds tied to anticipated revenue from those surcharges
    • Funds from the Commonwealth or other sources for emissions reduction purposes
    • Proceeds from disposition of real property acquired with Fund funds
  • Funds may be invested by the treasurer in financial institutions allowed under state law; income credited to the fund.
  • Municipal boards/commissions may recommend funding for emissions-reduction programs and may propose setting aside funds for future or general emissions-reduction purposes.
  • Real property acquired with Fund monies must carry a permanent deed restriction limiting use to purposes for which acquired; restriction can run with the land and be enforceable by the municipality (and may benefit a designated nonprofit).
  • Property owned or managed by the municipality; management may be delegated to other municipal bodies or a nonprofit organization.
  • Records and accounting are public; fund can be used as a local match for state or federal grants with legislative approval.
  • Fund cap: up to $15,000,000 in inflation-adjusted 2022 dollars for unallocated funds. Excess funds (not yet allocated or deposited in the year, or provided by the Commonwealth) would be transferred to free cash; the cap can be modified by the legislative body.
  • Termination: The legislative body may terminate the Fund after more than five years, with options to redirect remaining funds or discontinue individual programs.

2) Methane Emissions Surcharge on Natural Gas

  • Municipalities that adopt the section may impose a surcharge on natural gas use within the municipality, applicable to properties served by gas companies.
  • Surcharge cap: up to 25% of all charges for gas service on a customer’s bill, as determined by the municipal legislative body.
  • Exemptions: There is a complete exemption for qualifying residential customers who meet certain means-tested criteria (text indicates a means-tested discount exemption, though full details are truncated in the provided excerpt).

3) Non-Pipeline Alternatives

  • The bill’s title and provisions authorize consideration or use of non-pipeline alternatives to reduce methane emissions, though the provided text does not detail specific methodologies.

Affected Parties

  • Municipalities: authority to create the Emissions Reduction Fund, impose the gas surcharge, and adopt related programs.
  • Gas customers: potential surcharge on gas bills (with means-tested residential exemptions).
  • Municipal treasurers and legislative bodies: ensure fund administration, accounting, and appropriation of funds.
  • Property owners and nonprofit partners: may have property interests with deed restrictions tied to Fund acquisitions.
  • Municipal boards/commissions: advise on funding recommendations.

Procedural and Timeline Notes

  • Status: Referred to the House Rules Committee (as of April 17, 2025).
  • Net effect depends on municipality adoption; there is no statewide surcharge unless each municipality opts in under Section 4 of Chapter 4 and Section 2 of this bill.
  • The bill references a previously filed similar matter (House 3235 of 2023-2024).

Potential Impacts

  • Enables local control over methane-emission reduction financing and programs.
  • Creates a dedicated fund with oversight and public-record requirements.
  • Introduces a statewide policy lever for reducing methane emissions via local gas surcharges, with targeted exemptions.
  • Encourages municipalities to pursue non-pipeline strategies for emissions reduction.

For municipalities considering adoption, focus areas include fund administration, debt/appropriation planning, eligibility for exemptions, and community engagement on emissions-reduction goals.

Compiled from official sources — confirm details with the bill’s official record.

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